Should Value Investors Buy Evertec (EVTC) Stock?

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.One company to watch right now is Evertec (EVTC). EVTC is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 9.42. This compares to its industry's average Forward P/E of 20.91. Over the past year, EVTC's Forward P/E has been as high as 11.49 and as low as 9.26, with a median of 10.35. Investors should also note that EVTC holds a PEG ratio of 1.34. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. EVTC's PEG compares to its industry's average PEG of 1.82. Over the last 12 months, EVTC's PEG has been as high as 1.83 and as low as 1.13, with a median of 1.33. Investors should also recognize that EVTC has a P/B ratio of 3.5. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. EVTC's current P/B looks attractive when compared to its industry's average P/B of 8.25. EVTC's P/B has been as high as 5.07 and as low as 3.41, with a median of 4.27, over the past year.Finally, investors should note that EVTC has a P/CF ratio of 8.19. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. EVTC's current P/CF looks attractive when compared to its industry's average P/CF of 14.89. EVTC's P/CF has been as high as 11.11 and as low as 7.89, with a median of 8.96, all within the past year.These are only a few of the key metrics included in Evertec's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, EVTC looks like an impressive value stock at the moment.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Evertec, Inc. (EVTC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks